Dow Sets New Record as USD Ends Mixed on Monday Session
The Dow Jones hit a fresh all-time high Monday while the dollar gained against the yen but lost ground to the pound and euro.
U.S. equity markets opened the week with a broad rally Monday, July 6, as the Dow Jones Industrial Average closed at a fresh record high and the Nasdaq outperformed major indices on the back of surging large-cap technology and semiconductor shares. The S&P 500 also finished solidly in the green as investors returned from the holiday weekend in an unmistakably risk-on posture, channeling fresh capital into AI and chip-related names despite mixed market breadth across the broader tape.
The U.S. dollar ended the session on mixed footing against the seven major currencies. The greenback posted its biggest advance against the Japanese yen, rising 0.45%, while also gaining 0.25% versus the Swiss franc and 0.22% against the Australian dollar. On the losing side, the dollar slipped 0.26% against the British pound and shed modest ground versus the euro, signaling that traders remain divided on near-term dollar direction.
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On the data front, the ISM Non-Manufacturing PMI for June landed exactly at the 54.0 consensus estimate, confirming that the U.S. services sector continues to expand at a healthy clip. Analysts noted the result reinforced a picture of moderate but durable economic growth, even as tariff pressures, fuel costs, and geopolitical uncertainty continue to loom over business sentiment. Canada's S&P Global Services PMI told a more cautious story, sliding to 47.1 in June from 50.6 in May, dropping into contraction territory.
Federal Reserve Governor Christopher Waller, speaking on a panel in Italy, reaffirmed that policymakers remain fully committed to the Fed's 2% inflation target and defended forward guidance as a policy communication tool that has strengthened the central bank's decision-making framework. Meanwhile, European Central Bank officials sent their own signals: ECB board member Isabel Schnabel warned that the current price shock cannot simply be dismissed, while ECB's Wunsch suggested inflationary pressures from Iran appear to have dissipated with limited second-round effects observed so far.
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